My Opinion: 2025 Year Gone-By & Outlook for 2026

By Gaurav Varma, Director, ORA Group
 
The year 2025 marked a decisive phase for India’s real estate sector, driven by regulatory stability, infrastructure momentum, and a clear shift toward quality-led, end-user-focused development. Despite global headwinds, the sector demonstrated resilience across redevelopment, residential, warehousing, plotted developments, and luxury housing—setting a strong foundation for 2026.
 
SRA & Redevelopment: A Year of Acceleration
SRA and redevelopment activity gained strong traction in 2025, particularly in Mumbai and the MMR, with an estimated 20–25 million sq ft of projects under planning and execution. Redevelopment now contributes nearly 40% of Mumbai’s annual housing supply, supported by faster approvals and improved policy clarity. Developers with strong balance sheets and execution capabilities emerged as leaders. This momentum is expected to accelerate further in 2026.
 
Residential & Warehousing: Dual Engines of Growth
India’s residential market recorded sales of 4.5–5 lakh housing units across the top seven cities in 2025, led by end-user demand across mid-income, premium, and luxury segments. Unsold inventory declined to 18–20 months, reflecting healthier absorption levels.

Warehousing remained a strong institutional play, with 45–50 million sq ft of absorption, driven by e-commerce, 3PL, and manufacturing. Tier II and III cities gained prominence due to improved logistics connectivity
 
Plotted Development & Gated Communities: The Aspirational Shift
Plotted developments saw 25–30% year-on-year demand growth in 2025, as buyers increasingly preferred land ownership, flexibility, and long-term appreciation. Gated communities offering security, open spaces, and lifestyle amenities emerged as the preferred choice for families and professionals—a trend expected to strengthen further in 2026.
 
Luxury Housing
Luxury housing accounted for 20–22% of total residential sales value across major metros in 2025. Cities such as Mumbai, Bengaluru, Pune, Hyderabad, and Delhi-NCR recorded strong demand for villas, penthouses, and branded residences, supported by rising HNI participation and double-digit price appreciation in select micro-markets. The luxury segment is poised for further growth in 2026.
 
Connectivity & Infrastructure: The Real Game-Changer
2025 witnessed transformative infrastructure progress, including the Mumbai Trans Harbour Link (MTHL), Navi Mumbai International Airport, Panvel–Karjat rail corridor, and Goregaon–Mulund Link Road. These developments triggered 15–30% capital value appreciation across emerging MMR locations such as Panvel, Ulwe, Karjat, Malad and Goregaon reshaping investment and end-user demand.
 
Sectoral Outlook: Stability, Scale, and Smart Growth
The broader real estate sector in 2025 was characterized by strong end-user-led sales, declining unsold inventory, increased institutional investments in warehousing, rental housing, and data centres, and growing consolidation favouring credible developers. Sustainability, ESG compliance, and technology-driven development emerged as key differentiators.
 
As we enter 2026, the outlook remains distinctly optimistic. With policy stability, rising consumer confidence, improved financing access, and expansion into new micro-markets, Indian real estate is positioned for sustainable, scalable, and smart growth.
 
The year gone by marks the beginning of a transformative decade for Indian real estate. With redevelopment gaining momentum, residential and warehousing acting as growth anchors, plotted developments rising, luxury housing scaling new benchmarks, and connectivity reshaping urban contours—2026 stands out as a year of accelerated opportunities and long-term value creation.